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The latest decision would confine the agency to handling law enforcement and compliance, climate advocates pointed out. Pixabay

In a strategic move to gain the Coalition's support, the Labor government has agreed to modify its proposal for the Environmental Protection Agency (EPA), by making it more business-friendly, instantly drawing severe backlash from environment groups.

Based on the revised proposal, instead of setting up an independent watchdog with the power to approve or block projects when it is implemented from July 1 next year, the EPA's decision-making authority will rest with the environment minister, ABC News reported.

As Prime Minister Anthony Albanese spoke of the plan in Western Australia to tone down the proposal, the government faced widespread criticism, with the Greens and environment groups calling out Labor for breaking election promises.

The resources sector had been desperately pushing the government for a resolution before the next federal elections, and pollsters predicted a hung parliament.

The latest decision would confine the agency to handling law enforcement and compliance, climate advocates pointed out, reported The Guardian.

Western Australia, considered to be a resources-heavy state, played a key role in Labor's win in 2022. After facing criticism for being union-friendly, the party is eager to present a pro-mining outlook.

Albanese was vocal about engaging with the Coalition to "get it right."

"One of the things we're considering is whether the new EPA would be compliance-only," Albanese stated, adding the revised plan would ensure the parliament approved the legislation.

Shadow Environment Spokesman Jonathan Duniam confirmed discussing with Environment Minister Tanya Plibersek about replacing the environmental regulations that were recommended two decades ago.

Meanwhile, pro-climate groups warned the government against surrendering to billionaire miners and greedy developers. "Capitulating to vested interests by weakening the EPA and pushing off further critical law reform until next term would betray the promise to fix Australia's broken nature law," Greenpeace spokesman Glenn Walker said.

Defending the government's move, Plibersek said Labor was still talking to all parties.

"There is something in this for everyone — the whole idea is to have a system that is both better for nature and for business," she said. "Sensible, lasting reform will give industry the stability it's looking for, and nature the protection it needs."

The latest move by the government proved that it was "caving in" to WA's mining lobby and brokering "a deal with Peter Dutton," Greens' environment spokesperson, Sarah Hanson-Young, said.

"Labor caving in on environment laws would be the final nail in the coffin for Labor's environmental credibility before the next election," she said. "The science is clear: we need environment laws that actually protect the environment. That means ending native forest logging and stopping new fossil fuel project approvals, via a climate trigger."

Independent senator David Pocock described the revised proposal a "betrayal of the people and places we love."